Mortgage applications increased 27.9% from one week ago, according to Market Composite Index data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 13.
On an unadjusted basis, the index increased 32% compared with the previous week. The Refinance Index increased 34% from the previous week and was 81% lower than the same week one year ago. The seasonally adjusted Purchase Index increased 25% from one week earlier. The unadjusted Purchase Index increased 32% compared with the previous week and was 35% lower than the same week one year ago.
“Mortgage application activity rebounded strongly in the first full week of January, with both refinance and purchase activity increasing by double-digit percentages compared to last week, which included the New Year’s holiday observance,” says Mike Fratantoni, MBA’s SVP and chief economist. “Despite these gains, refinance activity remains more than 80% below last year’s pace and purchase volume remains 35 percent below year-ago levels.
“Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak mortgage rate last fall,” adds Fratantoni. “As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers.”
The refinance share of mortgage activity increased to 31.2% of total applications from 30.7% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.6% of total applications.
The FHA share of total applications decreased to 13.0% from 13.4% the week prior. The VA share of total applications decreased to 11.8% from 13.2% the week prior. The USDA share of total applications remained unchanged at 0.6% from the week prior.
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